An Economic Analysis of Development and Structure of the Foreign Total Intra-Arab Trade

Abstract

The foreign intra-Arab trade is an essential tool and important input in order to achieve an important Arab economic integration. However, in spite of the efforts for the Liberation of the Arab Trade and Development, the fact indicates the modest rate of the foreign intra-Arab trade to the foreign total Arab trade with the world, as it does not exceed that percentage to 10.9% in year 2013. The present research is aimed at measuring the efficiency of the total foreign intra-Arab trade during the period (1990-2010). Where, it has been increased sharply, as value of the total foreign intra-Arab trade increases annually by about 12.6%. Saudi Arabia and United Arab Emirates are considered the most important contributors of the total foreign intra-Arab trade, and a category of manufacturing has dominated the largest relative importance in average value of total Arab trade, which has accounted to 50.8%. Followed by category, metal fuel and other metals are accounted by about 25.3% and there is lower overall contribution to the foreign intra-Arab trade in the total foreign trade of Arab and its amount has increased by 10.58%. Therefore, it is recommended to further coordination among the Arab States in the areas of production and specialization in economic production. This is also recommended to establish the specialized department for greater Arab free trade area in every Arab country in addition to accelerate the establishment of a customs union.